How does your nonprofit account for unemployment insurance?

Risk management is certainly a popular topic for nonprofits that want to remain agile and effective. However, there’s one area that tends to be overlooked by such groups: state unemployment taxes (SUTA). The two traditional options for covering the SUTA obligation are paying into the state fund, as a for-profit business would, or electing to become a reimbursing employer and paying out unemployment claims directly, dollar for dollar. Paying the tax into the state fund often means overspending on unemployment taxes and losing money even if your organization has low or no unemployment claims in a given year. The reimbursing employer strategy provides more financial control, but can be extremely risky if an organization experiences a rise in unemployment.

First Nonprofit Group (FNG) offers the safest available programs that mix the best aspects of these two approaches into a risk-averse, cost-effective solution. By providing far more control over unemployment costs, FNG alternatives help nonprofits save money while also protecting them from pooled risk. By employing the use of surety and insurance coverage products and avoiding the cost-pooling elements of contributing to a SUTA fund, nonprofits don’t waste money that could otherwise be spent on operational and project budgets, as well as future claims. With a managed savings or insurance plan, nonprofits can carry such funds as an asset in their books and can even borrow against it when needed. The combination of predictable fees and equal quarterly payments – instead of the heavy first- and second-quarter contributions common with SUTA funds – helps normalize contributions and lessen the financial burden on nonprofits.

First Nonprofit Group also offers the customer support that is lacking from the other options available to charitable groups. Instead of dealing with state 1-800 numbers and dedicating staff members’ valuable time to dealing with these issues, First Nonprofit Group’s customers can use the services of friendly, dedicated and experienced representatives to handle their unemployment needs.

For information on how your organization can cost-effectively meet its unemployment insurance needs, contact First Nonprofit Group at or visit